EMEA
Bowmark Capital made a £100m cash offer for Tax Systems.
Bowmark Capital made a £100m ($128m) cash offer for Tax Systems, a leading provider of corporate tax software and services in the UK and Ireland. The 110 pence per share price represents a premium of approximately 9.5% to the closing price on 6 February 2019.
Tax Systems Non-Executive Chairman Clive Carver said: "The offer from Bowmark represents a 64.2% return for investors who invested at the point of the reverse takeover, only two and a half years ago. The independent directors believe that Bowmark will be an excellent partner to Tax Systems and its management, and believe the acquisition is in the best interests of all our stakeholders, and unanimously recommend that shareholders vote in favor of the resolutions relating to the acquisition."
GCA Altium and Stephenson Harwood advised Bowmark Capital. FinnCap, K&L Gates and Oakley Advisory advised Tax Systems.
European fund manager Star Capital acquired ASL Aviation, a diversified aviation services company based in Dublin. Terms of the deals were not disclosed, however the purchase price is rumored to be around €100m ($112m).
“Our aim is to be the aviation services provider of choice and we will work with Star Capital to continue to deliver that by expanding our product offering, developing our geographical compass and focusing on core values,” ASL chief executive Hugh Flynn said.
Lion Capital acquired DMC Group from BlueGem Capital.
The DMC Group comprises a portfolio of leading European brands in the needlecrafts space, including DMC, Wool and the Gang and Sirdar. The portfolio also includes Tilsatec, a leading brand of high-performance technical yarn. Financial terms were not disclosed.
Justin Wraight, CEO of The DMC Group, commented: “BlueGem have been highly supportive partners in the formation and development of The DMC Group. From these strong foundations we look forward to the next phase of growth with Lion Capital, who share our excitement for the future and have the experience to help us continue to grow and optimize our portfolio of iconic needlecraft and technical yarn brands.”
Lion Capital was advised by Proskauer, PwC, DLA Piper and Pragma Consulting. BlueGem was advised by Baird, PwC, Baker McKenzie and LEK.
Independent investment group Shore Capital Group acquired Stockdale Securities for £9m ($11m). Stockdale serves an institutional and corporate client base offering corporate advisory and corporate broking, equity research, sales and trading services to institutional investors, with a focus on small and mid-cap companies and listed investment funds. Stockdale's corporate broking and advisory team acts for 53 corporate clients and it has dealing relationships with approximately 200 institutions.
Commenting on the acquisition, Simon Fine, Co-Chief Executive of Shore Capital, said: "We are delighted to welcome the Stockdale team to Shore Capital. The combination of our complementary businesses adds scale, expertise and diversity to Shore Capital, demonstrating our commitment to serving the needs of our combined institutional and corporate clients."
Grant Thornton advised Shore Capital.
Carlyle Group and Bain Capital consider bidding for Osram.
Bain Capital and Carlyle Group are weighing a joint bid for Germany’s Osram Licht, a multinational lighting manufacturer. The two firms are conducting due diligence on Osram and could bid by the end of March.
Osram, with a market value of around €3.4bn ($3.8bn), has been the subject of speculation that it could be a buyout target. The German lighting group, once part of Siemens, sells its products mainly to car manufacturers.
Vitruvian Partners looking to sell German fintech Smava for $500m.
Vitruvian Partners is putting German consumer credit online platform Smava up for sale which may fetch up to $500m. The private equity firm has asked investment banks to pitch for roles in a potential sale or initial public offering of the fintech company.
Vitruvian led a $65m financing round for Smava last year. In various financing rounds, Smava has attracted $135m in financing from investors as Vitruvian, Verdane Capital, Runa Capital and Earlybird.
Pernod Ricard to cooperate with Elliott Management.
CEO of Pernod Ricard, a French company that produces alcoholic beverages, said that the company will embrace change and continue constructive talks with activist investor Elliott Management Corporation. He also dismissed rumors that the company could become a takeover target. Elliott has been recently pressuring Pernod Ricard to improve profit margins and corporate governance.
Badwa Capital launched a $100m real estate investment arm.
Dubai-based Badwa Capital has set up a new real estate asset investment arm with an initial fund of $100m. The primary focus of the fund will be investments into infrastructure and real estate assets, which will be deployed through sale-leaseback, built-to-suit, and other types of transactions.
“Many companies are seeking to free up capital from real assets as they grow their core businesses. Through our new platform, we are well-positioned to support companies pursuing asset-light strategies while generating attractive risk-adjusted returns for our investors,” said Badwa Capital chairman and partner Fawzi Jumean.
North Sea oil assets spark interest of private equity firms.
According to a Financial Times report, $13bn of private equity investments could be deployed in North Sea assets to further shake up the industry. As oil majors and utilities continue to reshape their portfolios, retreat from oil and gas altogether or focus their investment in lower-cost regions, private equity funds are becoming interested in investing in the region.
Some of the biggest players in the industry include Chrysaor, backed by Harbour Energy and EIG Global Energy Partners, Neptune, backed by Carlyle, CVC and China Investment Corporation and Kerogen Capital, which holds a 21.9% stake in Hurricane Energy.
Akzo Nobel said it's confident in meeting its defense pledge.
Akzo Nobel, the Dutch paint and coatings company behind the Dulux brand, said it was on course to achieve an ambitious financial target despite a fall in annual operating profits. The company pledged to generate a 15% return on sales by 2020 as part of its defense against an unwanted €27bn ($30bn) takeover offer from PPG Industries. Chief executive Thierry Vanlancker insisted Akzo Nobel was making progress towards its objective, in the face of skepticism from investors, including the activist hedge fund Elliott Management Corporation.
“Our relevant competitors all took a nosedive in their profitability so we really went against the tide. Our internal plans really do add up to the [2020 target],” said Mr. Vanlancker.
AMERICAS
Sears chairman revealed the company’s post-bankruptcy plans.
Edward Lampert, chairman of Sears, an American chain of department stores, who made an attempt to save the company through a $2.2bn bid by his hedge fund, ESL Investments, said that Sears will sell or sublease some of its 425 stores and open smaller stores with more focus on tools and appliances than on apparel.
“It would be very difficult to keep all 425 stores open,” Lampert said in the interview. He also hinted that Sears would eventually be taken public, saying he doesn’t want the company to stay private indefinitely.
Sears was advised by Weil Gotshal and Manges. ESL Investments was advised by Cleary Gottlieb Steen & Hamilton. Transform Holdco, the previous owner of Sears, was advised by Bank of America Merrill Lynch, RBC Capital Markets, and Citigroup.
Dynamic Map Platform acquired Detroit-based map startup Ushr for $200m.
Dynamic Map Platform, a company that provides research, development and commercialization of high precision 3-dimensional map data used in the realization of autonomous driving and safe-driving support systems, acquired Detroit-based map startup Ushr for $200m. Upon closing, the companies will establish a single, enhanced platform for accelerated development and delivery of high-definition mapping solutions. Ushr’s current investors include GM Ventures, EnerTech Capital, Emerald Technology Ventures and Forte Ventures.
“DMP and Ushr share common values of progressing autonomous driving and advanced driver assistance systems as well as enhancing occupant safety and comfort through HD map technology,” said Tsutomu Nakajima, President of DMP. “Through the combination, we will be able to offer automotive OEMs a comprehensive HD mapping solution for the North American and Japanese markets, with the ability to expand globally in the future. Further, we will jointly improve the technologies and expand the area of services, accelerating our customers’ ability to deploy autonomous driving and ADAS going forward.”
Evercore and Wilson Sonsini Goodrich & Rosati advised Ushr. Squire Patton Boggs advised Dynamic Map Platform.
Darby Private Equity invested in Biopas.
Darby Private Equity, the private equity arm of Franklin Templeton Investments, invested in Biopas, a Latin American specialty pharmaceutical distribution company. No financial terms were disclosed.
“We are excited to partner with Biopas, a leading pharmaceutical company that is focused on transforming the lives of patients in Latin America. This transaction aligns with Darby’s commitment to investing in Latin American companies with strong management and a successful track record,” commented Ignacio Aicardi, Managing Director at Darby.
Ironwood Capital sold Tunnel Hill Partners, the largest integrated waste-by-rail company in the US, to Macquarie Group. The company provides a variety of services including hauling, recycling, beneficial reuse, transfer and disposal to commercial and industrial customers throughout the Northeast and Ohio. Financial terms were not disclosed.
Macquarie sees potential for Tunnel Hill's growth profile to be attractive to larger vertically-integrated companies, or possibly another private equity firm, in the future.
Petrobras expects further bids for its gas pipeline network in March.
Petrobras, a semi-public Brazilian multinational corporation in the petroleum industry headquartered in Rio de Janeiro, is expected to receive new bids for the acquisition of its gas pipeline network TAG in March. Engie, a French multinational electric utility company, Macquarie Group, and Mubadala together with EIG Partners will be bidding for the asset. So far all three groups bid higher than $7bn, and Engie’s bid is estimated to be close to $8bn.
The rebidding was set by Brazil’s audit court as a way to increase transparency in the Petrobras divestment program.
Flexport in talks to raise $500m from SoftBank.
Freight logistics provider Flexport is in talks to raise around $500m in a deal led by SoftBank Group. The deal would value the company at $3bn. Flexport has raised nearly $305m in funding over five rounds. Its latest financing round was in April 2018. The company's current investors include DST Global, Wells Fargo, and S.F. Express, a Chinese express delivery company.
Monumet recapitalized US-based MDME.
Monument MicroCap Partners recapitalized Montgomery DME, a provider of durable medical equipment to hospices located primarily in Los Angeles and surrounding counties. No financial terms were disclosed.
“We are excited to partner with Monument on the next chapter of our growth strategy,” said Pablo Miguel, Vice President of MDME. “Monument will provide us with strategic support and capital as we continue with our steadfast commitment to providing the highest quality of compassionate service to our clients and their patients.”
Jobvite secured $200m in financing from K1.
Jobvite, a software and recruiting corporation, based in San Mateo, California, secured $200m in a financing round led by K1 Investment Management. Jobvite is leading the next wave of recruitment innovation with Continuous Candidate Engagement, a candidate-centric recruiting model that helps companies engage candidates with meaningful experiences.
“Our focus is to help leading companies win top talent and build the best teams with an award-winning candidate experience,” said Dan Finnigan, Jobvite CEO. “K1 provides unparalleled SaaS expertise and vast resources that, in combination with these four trailblazing companies, will offer our customers the most comprehensive solutions, knowledge, and services available in the market.”
Nuvaira secured $79m in funding in USVP-led round.
Minneapolis-based Nuvaira, a developer of medical devices that treat obstructive lung diseases, raised $79m in financing. US Venture Partners led the round with participation from other investors that included Endeavour Vision, Qiming Venture Partners, Lightstone Ventures, Advanced Technology Ventures, Morgenthaler Ventures, Split Rock Partners, Versant Ventures, Vertex Venture Holdings and Windham Venture Partners.
"We are thrilled to have such a strong consortium of top-tier investors in this financing, as a clear vote of confidence in our work and the performance of our novel catheter-based system in our Phase 2b randomized, sham-controlled trial in patients with chronic obstructive pulmonary disease (COPD) patients," said Dennis Wahr, M.D., Chief Executive Officer of Nuvaira. "These funds will be used to support the pivotal AIRFLOW-3 clinical trial for FDA approval, and to implement a targeted clinical development strategy in key European markets."
APAC
InterContinental Hotel Group, a British multinational hospitality company, acquired Six Senses Hotels Resorts Spas, one of the world's leading operators of luxury hotels, resorts and spas, from Pegasus Capital for $300m. The acquisition includes all of Six Senses' brands and operating companies and does not include any real estate assets.
Keith Barr, Chief Executive Officer, IHG, commented: "Six Senses is an outstanding brand in the top-tier of luxury and one we've admired for some time. You only have to look at its iconic hotels and resorts to see how this acquisition will further round out our luxury offer. With a focus on wellness and sustainability, Six Senses has been voted the world's top hotel brand for the past two years, which is testament to its impressive management team who bring deep experience to IHG's luxury operations. Six Senses' attractive development pipeline provides us with a platform for high-quality growth. With the power of the IHG enterprise, we believe we can expand Six Senses to more than 60 properties globally over the next decade. This acquisition continues the progress we've made against the strategic initiatives we outlined a year ago, which included a commitment to adding new brands in the fast-growing $60bn luxury segment."
TPG Capital and Manipal in talks to acquire Medanta.
TPG Capital and Manipal Group, an Indian education and healthcare services provider, are in advanced talks to acquire Medanta, a hospital operator in India. The deal could value the company at $847m.
“The TPG-Manipal combine is in advanced stages of negotiations and they recently entered into exclusive talks. They are currently conducting a due diligence on the asset. They have a three-month exclusivity period, so Medanta will not be talking to any other buyer during this period,” said Naresh Trehan, chairman and CEO of Medanta.
Huagai Capital led a $146m round in HaiHe Biopharma.
Beijing-based Huagai Capital led a $146m financing round for China’s HaiHe Biopharma, which is engaged in the discovery, development and commercialization of drugs for cancer treatment. Other investors included Yingke PE, CSPC, Hillhouse Capital, Chinese Academy of Sciences Venture Capital, Atlas Capital, Boyuan Capital, Elite Capital and Daehwa Pharmaceutical.
The company will use the funds to accelerate R&D push into its innovative anti-cancer drugs in clinical and pre-clinical stages.
Hostile bid for Descente raises private equity interest in Japan.
According to a Financial Times report, the hostile takeover offer the Itochu trading house made for the Descente sportswear group is sparking private equity interest in Japan. On January 31 this year, Itochu made a surprise tender offer at a 50% premium to the shares’ previous close that seeks to increase its stake in the company to 40%.
Descente, which asked its shareholders to refuse the offer, may be looking for white knight solutions by entering buyout discussions with a private equity fund. Several private equity groups say they have been sounded-out by Descente’s advisers about stepping in as a white knight.
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